7th pay commission: National Pension System-based New Pension Scheme (NPS) or Old Pension Scheme (OPS)? Replacing the former with the latter is one of the biggest demand of several government employees.
7th pay commission: National Pension System-based New Pension Scheme (NPS) or Old Pension Scheme (OPS)? Replacing the former with the latter is one of the biggest demand of several government employees. The years-old battle has now taken a new turn with the Delhi Assembly officially passing a resolution to replace the NPS with OPS.
The resolution passed on Tuesday said, “The Legislative Assembly in its sitting on 26 November 2018 resolves to urge upon the Government of India to scrap the NPS with immediate effect and bring at once all the Government Servants working under the Government on NCT of Delhi under the old pension scheme and restore to them all the benefits of the old pension scheme wherein the fair and legitimate pensions’ benefits are disbursed through the Consolidated Fund of India…”.
1. No Guarantee
“Unlike the old pension scheme, the NPS does not give any guarantee to the employees either for assured returns on investments or for minimum pension.” Image: Reuters.
2. No social security
“NPS does not provide for familiy pension or social security”
3. National Pension System-No loan when needed
“NPS does not provide for loan facility when in dire need.”
4. National Pension System-No DA
“NPS does not provide for annual increments and hike on DA.”
5. National Pension System-No money for medical emergencies
“NPS does not allow the employees to withdraw enough money from their own pension fund to meet the medical emergencies.”
6. National Pension System-Employees at mercy of volatile markets
“NPS leaves the employees at the mercy of volatile markets and the forces that have notoriously been manipulating the markets.”
7. National Pension System – Draconian restrictions
“NPS imposes draconian restrictions on withdrawals from pension fund.”
8. National Pension System -Insurance companies exploit
“NPS allows the insurance companies to exploit employees by way of forcing them to buy annuity for minimum of ten years even after retirement, and runs contrary to the spirit of welfare state as enshrined in the Constitution.”
9. ‘Restore OPS for Central Govt Employee’
The Delhi Assembly also resolved to “urge upon the Government of India to restore the old pension scheme in place of NPS or the benefit of all the Goverment Servants working under the Government of India and also to actively urge States to follow this true welfare measure.”
10. Pension Politics
Earlier, Delhi CM Arvind Kejriwal had said he will appeal to other non-BJP ruled states like Andhra Pradesh, West Bengal and Karnataka to work for replacing the NPS with OPS, and forcing the Centre to accept their demand in the run up to the elections. The Centre has not responded on the Delhi government’s decision.
Source:- ZEE BIZ